The Grazer Bike Citizens Mobile Solutions GmbH – formerly Bike City Guide – is insolvent. Since 2012, the company has been making a name for itself with a navigation app for cyclists outside Austria. Bicycle accessories such as the “Finn” mobile phone holder were also sold. Now the company with 22 employees is bankrupt, according to the credit protectors of AKV, KSV1870 and Creditreform.
The liabilities of approximately 2.33 million euros are offset by free capital of approximately 0.21 million euros. Over the years, the company tried to improve its profit situation with continuous development and technical improvements and new ideas, but despite subsidies and crowdfunding campaigns, a break-even point could not be reached, according to the credit protectors.
According to the company, the effects of the Covid 19 pandemic were also decisive, as bicycle use declined during the lockdowns. Acquisition and planning of new products apparently lagged behind. As a result, high development costs could not be compensated and talks with investors failed. A continuation of the company is not envisaged. 38 creditors would be affected.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
